Research has found that 41% of small business owners and sole traders employ family members, with 27% employing their partner.
The research also found that 17% of business owners and sole traders plan to pass their business on to a family member when they retire. However, 7% believed that their family wouldn’t want to run their business.
- 41 per cent of cent of small business owners and sole traders employ family members in their business, with 15 per cent hiring sons and daughters
- Just 63 new companies registered on Companies House in the last financial year included ‘and daughter(s)’ in the company name compared to 1,765 containing ‘and son(s)’
- Family businesses are 44 times more likely to have ‘& son(s)’ than ‘& daughter(s) in the name
- 17 per cent of SME business owners and sole traders plan to pass their company on to a family member to run upon retirement
New research* by Direct Line reveals small businesses are a family affair, with 41 per cent of SMEs and sole traders employing family members. One is seven (15 per cent) small business owners employs at least one of their children to work for them.
Analysis** of Companies House data shows when it comes to naming a family business, sons are favoured over daughters, with businesses 44 times2 more likely to have ‘and son(s)’ in the name than ‘& daughter(s)’.
In the last financial year just 63 new companies registered on Companies House included ‘and daughter(s)’ in the company name. This is in stark contrast to the 1,765 new companies registered containing ‘and son(s)’.
More than a quarter (27 per cent) of small business owners employ their partner to work for their business, with 14 per cent employing a sibling to work alongside them. More than one in ten (11 per cent) SMEs owners and sole traders have hired a parent to work in their company, with the same number hiring a brother or sister in-law. One in 14 (7 per cent) small business owners work alongside their grandparents in their company, ensuring work is a family affair.
Table 1: Family members employed by small business owners/sole traders
| Family member | Percentage employ |
| Partner | 27 per cent |
| Son/Daughter | 15 per cent |
| Brother/Sister | 14 per cent |
| Parents | 11 per cent |
| Brother/Sister in-law | 11 per cent |
| Niece/Nephew | 10 per cent |
| Other family member | 9 per cent |
| Aunt/Uncle | 8 per cent |
| Stepson/Stepdaughter | 8 per cent |
| Parents in-law | 7 per cent |
| Grandparents | 7 per cent |
Source: Direct Line 2024
When it comes to succession planning, one in seven (17 per cent) business owners and sole traders say they plan to pass their business on to a family member to run upon retirement. However, relations may not want to take on a business, seven per cent say they don’t think their family would want to run their company.
Alison Traboulsi, SME Product Manager at Direct Line Business insurance commented:
“Family businesses are thriving, with thousands operating across the UK, where relatives work together to grow a company. Many business owners even hope to leave their company to a family member to run when they retire. However, it would appear that old traditions die hard when it comes to naming family businesses, with many still favouring ‘and sons(s)’ in the business name over ‘and daughter(s)’.”
With around 100 members any business in Dorset can join Dorchester Chamber from business for £60p/a (no VAT).
*Censuswide survey of 502 Small business owners/sole traders. The data was collected between 24.07.2024-26.07.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
**Freedom of information request to Companies House – data in the press release is for FY 2023/24. Total number of companies listed on Companies House (in FY 23/24) with ‘and son’ or ‘and sons’ in the name = 19,653. Total number of companies listed on Companies House (in FY 23/24) with ‘and daughter’ or ‘and daughters’ in the name = 445